Daily Regulatory Notes 05/05/2025

Every day, we bring you a detailed overview of recent news and updates about primary decisions, community feedback, or legislative changes relevant to the short-term rental industry. 📰

Vermont

Vermont towns are taking diverse approaches to short-term rental rules as the state faces a housing shortage. Londonderry recently tightened its ordinance by capping how many properties each owner can register, increasing unhosted rental fees to $250 per bedroom, and limiting new unhosted rentals to 50 days per year. Winhall followed with a $500-per-bedroom fee and a licensing system focused on safety and wastewater compliance.

Sunderland and Dorset introduced lighter-touch ordinances aiming to monitor impacts rather than restrict activity, while Woodstock and Chester have imposed caps on the number of STRs allowed. Meanwhile, Manchester and Arlington haven’t enacted local rules yet, though the Village of Manchester has its own ordinance.

At the state level, Act 183 adds a 3% surcharge on STRs starting in August, and a proposed bill, H.242, could bring statewide registration and occupancy limits.

Monterey County, CA

Monterey County’s short-term rental ordinance passed last August after more than a decade of debate, is now tied up in legal battles. The Monterey County Vacation Rental Alliance claims the 4% STR cap unlawfully restricts property rights.

Separately, Carmel Valley property owner Fred Faltersack sued saying the new rules violate a promise tied to his 2023 STR permit. A local group, the Carmel Valley Association, also tried to join the case in defense of the ordinance but was told to file a supportive brief instead. The next hearing is scheduled for May 13.

Pittsfield, MA

Pittsfield officials are finalizing a short-term rental policy that will regulate where and how STRs operate, requiring permits, annual renewals, and zoning reviews. Existing rentals will have a nine-month window to comply.

The ordinance bans STRs in income-restricted housing and among owners with unpaid fines. Enforcement will be shared across city departments with the Licensing Board overseeing permits and violations.

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Nantucket, MA

Nantucket voters revisit the long-running short-term rental debate at Saturday’s Annual Town Meeting with four competing articles on the table.

Article 66, backed by the Finance Committee and Planning Board, would codify STRs—renamed "Nantucket Vacation Rentals"—as a legal use in all residential zones. Articles 67 and 68, supported by ACK Now, aim to restrict STRs as accessory uses imposing owner-occupancy or long-term use requirements, but face questions about enforcement and legal standing. Article 69, also from ACK Now, proposes a 1,350-unit cap and data collection period, though critics warn it could severely cut tax revenue.

Cleveland, OH

In the wake of shootings near a short-term rental in Cleveland’s Tremont neighborhood, residents are calling for stronger city regulations and enforcement to curb nuisance rentals. While local rules already require STRs to be the owner’s primary residence, neighbors say the law is essentially unenforced, allowing absentee owners to run disruptive party houses.

Councilmember Kerry McCormack confirmed that a licensing proposal is in the works that would allow the city to revoke permits from problem operators.

Elmhurst, IL

Elmhurst is moving toward modest regulations on short-term rentals like Airbnbs, aiming to track and manage them without imposing a ban. A proposal headed to the City Council would require licenses, guest logs accessible by police, and $1 million in insurance coverage, with escalating fines for violations.

Alderman Michael Brennan supports the approach, saying it would help the city understand how many STRs exist and who is hosting them. But Alderman Rex Irby, citing a disruptive party incident on his block, wants stricter rules, including a minimum one-week stay and hotel tax application.

In case you missed it:

Weekly Regulatory Briefing (18)

Each week, we bring together the biggest updates in short-term rental regulations from coast to coast. Whether it’s fresh local regulations, emerging trends, or major discussions, our briefing provides all you need to stay in the know.

STRisker - Short-term regulatory changes and newsGenelaine Urbano

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